Business combination creates a leading
Australian financial services firm with an expanded national
footprint and a powerful offering for its combined clients
TORONTO and MELBOURNE, Oct. 21,
2019 /CNW/ - Canaccord Genuity Group Inc. (TSX: CF,
"Canaccord Genuity", the "Company") is pleased to announce that
through its Australian operation, Canaccord Financial Group
(Australia) Pty Ltd ("Canaccord
Genuity Australia"), it has closed its previously announced
acquisition of 100% of the issued share capital of Patersons
Securities Limited ("Patersons").
"The completion of the Patersons transaction marks the beginning
of a new chapter for our Australian business, as we systematically
expand our presence with a leading wealth management business in
Australia," said Marcus Freeman, CEO of Canaccord Genuity
Australia. "Together we will be a stronger market participant with
an expanded national presence in the Australian financial services
industry, offering an expanded suite of resources, products and
services for our combined clients in wealth management and capital
markets."
Working with the Company's existing capital markets and wealth
management operations, Patersons will become Canaccord Genuity
Patersons Limited and will continue to be authorized by the
Australian Securities and Investments Commission (ASIC) to provide
regulated products and services (including managed discretionary
accounts through the Accolade Plus/Accolade Plus Premier Service)
for its clients. Clients and employees of both Canaccord
Genuity1 and Patersons will have access to the extensive
resources and expertise of both organisations. On a combined
basis, the wealth management and capital markets operations of
Canaccord Genuity Australia will have a total staff of over 280
people, and a national reach with 10 offices across Australia including Melbourne, Sydney, and Perth.
Michael Manford, Executive
Chairman of Patersons added: "On behalf of the shareholders and
employees of Patersons, we are very pleased to be joining Canaccord
Genuity. We entered this arrangement with a strong commitment to
preserving our long-standing heritage of operating in the best
interests of our clients and building on the cultural alignment
between our two firms."
For the year ended June 30, 2019
Patersons earned net revenue of C$56.0
million (A$58.0 million) and
operated on a breakeven basis after adjusting for exceptional and
deal-related costs. The wealth management business of Patersons has
more than 100 investment advisors and approximately C$2.7 billion (A$3.0
billion) on its comprehensive investment management platform
known as "Accolade" and approximately C$10.8
billion (A$12.0 billion) in
client trading and advice-based accounts.
_____________________________
|
1 The
existing capital markets business of Canaccord Genuity in Australia
will continue to operate as Canaccord Genuity (Australia)
Limited.
|
ABOUT PATERSONS SECURITIES
Founded in 1903, Patersons Securities Limited (Patersons) is one
of Australia's premier financial
services firms, offering comprehensive investment management,
financial planning, stockbroking advice and execution services for
Australian mass-affluent investors. Patersons also engages in
corporate finance activities, providing debt and equity solutions
for emerging small- and mid-cap companies in Australia, complemented by institutional
dealing capabilities serving domestic, Asian and other
international institutional clients investing in Australia. The firm has established a strong
presence in mainland Australia
with locations in Western
Australia, South Australia,
Victoria, New South Wales, Queensland and Australian Capital
Territory.
ABOUT CANACCORD GENUITY WEALTH MANAGEMENT
The wealth management operations of the Canaccord Genuity group
(Canaccord Genuity Wealth Management) provide comprehensive wealth
management solutions and brokerage services to individual
investors, private clients, charities and intermediaries through a
full suite of services tailored to the needs of clients in each of
its markets. Canaccord Genuity Wealth Management has Investment
Advisors (IAs) and professionals in Canada, the UK, Jersey, Guernsey, the Isle of
Man and Australia and has advisors
in Canada who are registered in
the US. In Canada, Canaccord
Genuity Wealth Management is a division of Canaccord Genuity Corp.
In the UK, Canaccord Genuity Wealth Management operates as
Canaccord Genuity Wealth Limited and, in the Channel Islands and
the Isle of Man, as Canaccord Genuity Wealth (International)
Limited. Canaccord Genuity Wealth Management deals with US persons
through Canaccord Genuity Wealth Management (USA) Inc.
ABOUT CANACCORD GENUITY GROUP INC.
Through its principal subsidiaries, Canaccord Genuity Group Inc.
(the "Company") is a leading independent, full-service financial
services firm, with operations in two principal segments of the
securities industry: wealth management and capital markets. Since
its establishment in 1950, the Company has been driven by an
unwavering commitment to building lasting client relationships. We
achieve this by generating value for our individual, institutional
and corporate clients through comprehensive investment solutions,
brokerage services and investment banking services. The Company has
wealth management offices located in Canada, the UK, Guernsey, Jersey, the Isle of
Man and Australia. Canaccord
Genuity, the international capital markets division, operates in
North America, UK &
Europe, Asia, Australia and the Middle East.
Canaccord Genuity Group Inc. is publicly traded under the symbol
CF on the TSX.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
This press release may contain "forward-looking information" as
defined under applicable securities laws ("forward-looking
statements"). These statements relate to future events or future
performance and reflect management's expectations, beliefs, plans,
estimates, intentions and similar statements concerning anticipated
future events, results, circumstances, performance or expectations
that are not historical facts, including business and economic
conditions and Canaccord Genuity Group's growth, results of
operations, performance and business prospects and opportunities.
Such forward-looking statements reflect management's current
beliefs and are based on information currently available to
management. In some cases, forward-looking statements can be
identified by terminology such as "may", "will", "should",
"expect", "plan", "anticipate", "believe", "estimate", "predict",
"potential", "continue", "target", "intend", "could" or the
negative of these terms or other comparable terminology. By their
very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and a number of factors
could cause actual events or results to differ materially from the
results discussed in the forward-looking statements. In evaluating
these statements, readers should specifically consider various
factors that may cause actual results to differ materially from any
forward-looking statement. These factors include, but are not
limited `to, market and general economic conditions, the nature of
the financial services industry and the risks and uncertainties
discussed from time to time in the Company's interim condensed and
annual consolidated financial statements, its annual report and its
annual information form ("AIF") filed on www.sedar.com as well
as the factors discussed in the sections entitled "Risk Management"
and "Risk Factors" in the AIF, which include market, liquidity,
credit, operational, legal and regulatory risks. Material factors
or assumptions that were used by the Company to develop the
forward-looking statements contained in this press release include,
but are not limited to, those set out in the Fiscal 2020 Outlook
section in the annual MD&A and those discussed from time to
time in the Company's interim condensed and annual consolidated
financial statements, its annual report and the AIF filed on
www.sedar.com. The preceding list is not exhaustive of all possible
risk factors that may influence actual results. Readers are
cautioned that the preceding list of material factors or
assumptions is not exhaustive.
Although the forward-looking statements contained in this press
release are based upon what management believes are reasonable
assumptions, there can be no assurance that actual results will be
consistent with these forward-looking statements. The
forward-looking statements contained in this press release are made
as of the date of this press release and should not be relied upon
as representing the Company's views as of any date subsequent to
the date of this press release. Except as may be required by
applicable law, the Company does not undertake, and specifically
disclaims, any obligation to update or revise any forward-looking
statements, whether as a result of new information, further
developments or otherwise.
SOURCE Canaccord Genuity Group Inc.